Instagram is rapidly becoming the dominant force in Meta Platforms Inc.’s advertising revenue, with projections suggesting it will account for half of the company’s US ad revenue within the next few years, Bloomberg reports.
This is according to estimates from market research firm eMarketer, highlighting the photo- and video-sharing app’s crucial role in Meta’s growth strategy.
Instagram’s expansion within Meta’s business model is significant, not only for its revenue generation but also its role in launching features like Reels and Threads, which directly compete with rivals such as TikTok. While in 2021 Instagram generated 27% of Meta’s total sales ($32.4 billion globally), its contribution has steadily grown, reaching nearly 30% of Meta’s global revenue by early 2022, according to court filings.
eMarketer forecasts that Instagram’s US advertising revenue will surpass $32 billion by 2025, representing a more than 24% increase from the current year. This growth is fueled by Instagram’s massive user base in the US, exceeding 148 million.
According to Jasmine Enberg, principal analyst at eMarketer, Meta’s emphasis on video content is a primary driver of this success.
